New Taxes for Expatriots

It seems that WPIUSH (see my pre­vi­ous post for expla­na­tion of this acronym) and the pre­vi­ous Con­gress have decid­ed to sock it to expats like Pam and me, by tax­ing income that we earn here in Cana­da. Yes, you read that right. For US cit­i­zens liv­ing abroad, they are see­ing a sub­stan­tial rise in their tax­es on income earned out­side the US, lead­ing a few (and more in time, I expect) to renounce their US cit­i­zen­ship.

If we weren’t so near to the US and trav­el­ing back and forth across the bor­der fre­quent­ly to vis­it friends and fam­i­ly as well as do busi­ness, I sus­pect that we’d be con­tem­plat­ing the same (after we get our Cana­di­an cit­i­zen­ship, of course). As it is, we’ll see a sub­stan­tial pre­mi­um that we now have to pay in order to main­tain our US cit­i­zen­ship. Talk about a slap in the face for those already dis­gust­ed with the cur­rent admin­is­tra­tion.

In a way, it’s like Father, like Son. It was George H. W. Bush who removed the tax deduc­tion for med­ical insur­ance by the self-employed, which end­ed up cost­ing me twice as much as any­one else as a con­sul­tant, and even­tu­al­ly led to me tak­ing a job with a com­pa­ny part­ly to get cor­po­rate Health Insur­ance. It’s amaz­ing how WPIUSH uses tax­es like a mul­ti-pur­pose weapon, employ­ing tax cuts for rich sup­port­ers and huge hikes to those who obvi­ous­ly aren’t his con­stituen­cy.

If doing 2 sets of tax­es was­n’t a pain already! I’d almost like to see them try and col­lect if we did­n’t pay. I sup­pose they’d catch us at the bor­der.